Gone are the days when bankruptcy was considered to be a taboo; nowadays filing for bankruptcy is quite a commonplace phenomenon. Without giving it as much as a thought, many thousands of Americans are facing bankruptcy each and every year.
Common Causes of Bankruptcy
There are many reasons that can precipitate a bankruptcy. It could happen due to loss of work, sickness or simply if there has been a dwindling of the monetary resources. US federal laws are lenient with people who are not in a position to make their debt payments. Such people are given the opportunity to have their debts forgiven. However, getting a bankruptcy is not such a good idea after all. The blemish of the bankruptcy continues on the credit report for as many as ten years. And, all the bills that have been voided by the bankruptcy are added as taxable income.
